Co-op Bank’s £15m for new SME lending scheme
A NEW £60m fund for small and micro-sized business has been launched by Business Secretary Vince Cable.
Announced in Birmingham, £30m of the cash is coming from the Regional Growth Fund, with £15m each committed by Manchester-based Co-operative Bank and the Unity Trust Bank.
The fund will lend to businesses via Community Development Finance Institutions (CDFI), which provide a source of funding for businesses that can struggle to get finance from mainstream banks and loan companies.
The Co-operative is the only high street bank to be supporting the scheme.
The funding is expected to create or safeguard over 8,000 jobs over six years across.
Business Secretary Vince Cable said: “We need effective channels to support small business which is why the CDFA and its members are so important for providing access to finance and kick starting the economy.
“Regional Growth Fund programmes like this one have already awarded SMEs over 500 grants and loans across the country. This is an excellent way to get value for money, but more importantly, it is a good way to focus on local priorities for growth, as most programmes are led by local partners. RGF is leading the way in rebalancing the economy and boosting business and industry.”
Keith Alderson, managing director, corporate and business banking, The Co-operative Bank, said: ”As a co-operative, we fully understand the important role small businesses play in communities by creating and sustaining jobs and helping to develop local economies.
“We are delighted to be supporting CDFA and the Regional Growth Fund, with this innovative and exciting initiative. It will deliver much needed finance right in the heart of communities. Our involvement is further demonstration of a commitment to play our part in supporting those businesses and social enterprises so vital to stimulating economic recovery.”
Ben Hughes, chief executive of the CDFA said: “We welcome the £60m invested by RGF and Co-operative Bank/Unity Trust Bank into our unique RGF programme. Through creating 8,000 jobs in some of the most deprived areas of England, it offers remarkable value for money in boosting sustainable local growth.
